1-REQUEST FOR PROPOSAL - Auditing Services - 9-8-2026.pdf

Delaware County Regional Water Quality Control Authority (DELCORA)

“RFP FOR AUDITING SERVICES”

September 8, 2026

The Delaware County Regional Water Quality Control Authority (DELCORA or Authority) requests proposals from qualified certified public accounting firms to comprehensively audit its financial accounts, records, statements, and procedures for the fiscal years ending December 31, 2026, 2027, 2028, 2029, and 2030.

These audits are to be performed in accordance with generally accepted auditing standards, the standards set forth for financial audits in the General Accounting Office’s (GAO) Government Auditing Standards, the provisions of the Federal Single Audit Act of 1984, 2CFR Part 200, Uniform Administrative Requirements, if applicable, Cost Principles, and Audit Requirements for Federal Awards. The Auditor shall adhere to generally accepted auditing standards set forth by the American Institute of Certified Public Accountants (AICPA).

There is no expressed or implied obligation for the Authorities to reimburse responding firms for any expenses incurred in preparing proposals in response to this request.

Materials submitted by respondents are subject to public inspection under Pennsylvania’s Right-To-Know Act unless exempt. Any language purporting to render the entire proposal confidential or proprietary will be ineffective and disregarded.

It is anticipated that a recommendation and proposed contract will be prepared for review and approval by the Authority Board of Directors at their November 2026 Board meeting. The Authorities reserve the right to reject any or all proposals submitted as it deems in its best interest, to request additional information from a firm that has submitted a proposal, and to amend any provision of this Request for Proposals with proper notice to prospective firms. The proposal package shall present all-inclusive audit fees for each year of the proposed contract term.

Background Information

The Delaware County Regional Water Quality Control Authority (DELCORA) is a body, politic and corporate, created October 20, 1971, by a resolution of the Council of the County of Delaware, Pennsylvania, the County, under an Act of General Assembly of the State, approved May 2, 1945, P.L. 382, as amended and supplemented, known as the Municipality Authorities Act of 1945, as amended (the “Act”).

The governing body of DELCORA is a Board of Directors consisting of nine (9) members appointed by the Delaware County Council. The Board is authorized to exercise any and all powers conferred by the aforementioned Act necessary for the acquisition, construction, improvement, extension, maintenance and operation of the

RFP for Auditing Services system facilities. A Board Member’s term is for 5 years. The terms of the Board members are staggered.

DELCORA does not have taxing power. Ongoing operations are funded from customer revenues. The acquisition and construction of capital assets are funded by capital borrowing, contributions from developers, Federal and State grants and loans, and customer revenues.

The system is divided into two regions: the Eastern Service Area and the Western Service Area. Each is served by a regional wastewater treatment plant. DELCORA is responsible for building, maintaining, and operating interceptors, force mains and pump stations in both regions, building the regional treatment plant in the Western Service Area, and acquiring capacity at the Philadelphia Water Department’s Southwest Water Pollution Control Plant (SW WPCP) for wastewater treatment for the Eastern Service Area.

DELCORA currently owns and operates sewer collection systems serving eight municipalities: the City of Chester, parts of the Township of Chester, and the Boroughs of Parkside, Upland, Trainer, Marcus Hook, Rose Valley and Edgmont.

Financial Information

DELCORA operates on a calendar fiscal year, ending each December 31st. For CY 2025, our Operating Budget is $100,000,000. Funding is provided by fees for service.

A copy of the 2025 audited financial statement may be found on DELCORA’s website and is attached to this proposal.

DELCORA has 153 full-time employees as well as 9 Board Members who receive monthly compensation. Payroll is processed internally on a weekly basis.

All accounting and bookkeeping is done internally by the accounting department.

All financial information is in the DELCORA Accounting Platform known as Tyler Technologies, previously known as New World Systems.

DELCORA is required to file an annual consolidated financial statement and the final adopted audit with the Department of Community and Economic Development by June 30th.

Due to its robust capital plan and overall size of the Authority, DELCORA functions under a Trust Indenture which has several outstanding loans, including several Pennvest Loans. TD Bank is the designated Trustee under the Trust Indenture.

Contract Period

The agreement shall be for a five-year period and shall become effective immediately upon execution by all parties, with implementation of all specified services to take place for the audit of fiscal years ending December 31, 2026, through December 31, 2030.

Compensation

Compensation for services shall be a fixed price for each year of the agreement.

Termination of Contract

Following implementation, should DELCORA find that the firm failed in any material respect to perform its obligation under the agreement they may cancel the agreement. The firm shall be liable for damages from such breach including reasonably foreseeable incidental and consequential damages. Should DELCORA find that the provision of auditing services under the terms of the agreement precludes DELCORA from administering its duties in an effective and efficient manner; they may cancel the agreement upon 60 days’ written notice to the firm. In such event, DELCORA shall compensate the firm at the pro rata hourly rate for services performed through the effective date of the cancellation, which shall be in full and complete satisfaction of the firm’s claim. The firm shall return all workpapers and work in progress to DELCORA.

CONTACT PERSON

Questions regarding this RFP may be directed to:

Lindsey Amadio, Controller, DELCORA Phone: 484-844-0482 Email: amadiol@delcora.org

GENERAL INFORMATION FOR RESPONDING TO THIS RFP

To be considered, an original proposal must be submitted online via the PennBid™ Program by October 14th, 2026, at 11:00 AM. All documents and solicitation details are available at no cost at PennBid™ - www.PennBid.net. DELCORA reserves the right to reject any or all proposals submitted. Proposals will be evaluated by Management, members of the DELCORA Finance Committee, and approved by the DELCORA Board of Directors.

During the evaluation process, DELCORA reserves the right, where it may serve to their best interest, to request additional information or clarification from proposers, or to allow corrections of errors or omissions. At their discretion, firms submitting proposals may be requested to make oral presentations as part of the evaluation process.

DELCORA reserves the right to retain all proposals submitted and to use any ideas in the proposals regardless of whether that proposal is accepted, unless clearly and specifically noted in the proposal submitted.

Submission of a proposal indicates acceptance by the firm of the conditions contained in this request for proposals, unless clearly and specifically noted in the proposal submitted.

The Auditor shall have the following qualifications:

1. The Auditor (firm) shall have sufficient full-time professional employees (with the CPA designation) located at its principal regional office from which its staff will be dispatched to conduct these audits

2. The Auditor shall demonstrate that its management and professional staff have an extensive background, knowledge, and experience in Pennsylvania municipal governmental accounting and auditing. This shall include, but not be limited to, involvement in various related professional associations (e.g., Government Finance Officers Association, Association of Government Accountants, PICPA and AICPA committees).

3. The Auditor's accounting staff must meet and document the ongoing continuing education requirements of the Pennsylvania State Board of Accountancy and the U.S. General Accountability Office (GAO).

4. The Auditor must meet and document the ongoing peer review requirements for compliance with professional standards established by the GAO and by the AICPA. The auditor shall include a copy of its most recently completed peer review report and letter of comments with its proposal.

The Finance Committee will be involved in the proposal review process and interviews. The committee will consider a variety of factors in recommending the selected firm to DELCORA’s Board of Directors. The following are several of the criteria to be used:

1. Line-Item cost for audit of DELCORA.

2. Understanding of the engagement and needs.

3. Experience of the firm and the proposed individuals to be assigned to the audit.

4. Resources available for the timely completion of the audit and scheduling of the work.

5. References from similar engagements.

6. The proposal’s compliance with the requirements of the RFP.

It is anticipated that the selection of a firm will be completed no later than

November 17, 2026. It is expected that an engagement letter will be executed between both parties within 30 days of approval. The firm selected to perform auditing services shall be required to prepare an engagement letter and to sign a separate contract with DELCORA, spelling out the major features of the 2026-2030 audits.

For the annual audit, the Auditor may bill DELCORA according to the following schedule:

25 percent -- upon completion of the preliminary field work.

50 percent -- upon completion and delivery of the state audit and financial report.

25 percent -- upon delivery and completion of the final CAFR.

The Auditor may bill DELCORA for other auditing services upon completion unless other billing arrangements have been agreed to.

MINIMUM CONTENT IN THE RESPONSES

To be considered, the Auditor's proposal must include the following:

1. A title page showing the firm’s name, address, and telephone number of the contact person; and the date of the proposal.

2. A signed letter of transmittal briefly stating that the firm submitting the proposal:

a. Is properly licensed to practice in the Commonwealth of Pennsylvania.

b. Agrees to perform all the work outlined in this RFP within the time periods established by the Authority.

c. Understands that the firm’s proposal is firm and irrevocable offer through at least April 30, 2030.

d. A certification that the person signing this proposal is entitled to represent the firm, empowered to submit the bid, and authorized to sign a contract with the Authority.

3. A report on your most recent external quality review, any findings discovered as part of that review and actions taken to correct those findings. The firm also must disclose information on the circumstances and status of any disciplinary action taken or pending against the firm during the past three (3) years with state regulatory bodies or professional organizations, as well as any pending or settled litigation within the past three (3) years.

4. A description of the size of the firm’s staff and experiences with organizations of similar size as the Authority.

5. Identify all personnel who will be assigned to work on this project. Include a summary of their background and experience in auditing as well as their assigned responsibilities under this proposal.

6. The proposal should set forth an audit approach and methodology to be used to perform the services, including a brief description of the firm's auditing goals and objectives along with the audit procedures that the firm will follow, presented in a form that will facilitate the Township's evaluating the firm's ability to identify, analyze, and propose solutions to governmental financial controls and problems. The hourly rates for each level of staff (partner, manager, staff accountant, and support staff) that the Auditor will charge for expanded or related auditing services. Any additional work outside the scope of the audit relating to the implementation of any new GASB Statements should be discussed with management prior to incurring any additional fees.

7. Provide a calendar as to when the firm will commit to completing each phase of the annual audit described in this proposal. Note the tentative schedule below.

8. Provide a list of municipal authorities and other local government jurisdictions (such as libraries, fire companies, authorities, etc.) for which the firm performed audits during the last five (5) years.

9. Provide three references for projects most similar in scope, including the following:

a. Name of the municipality/municipal authority.

b. Name and title of a contact person.

c. Telephone and email of contact person.

d. Size of the General Budget for the most recent year you audited, and the year audited.

e. Brief description of the scope of audit performed.

10. Provide fee information on a lump sum basis. This is to include all direct, indirect, and out-of-pocket expenses. An explanation of how the Auditor will charge for other expanded or related auditing services, such as required reporting under the Single Audit Act, if applicable.

11. A description of the firm, including the number of employees in partner, management, staff, and support positions -- at the local, regional, and national levels. This shall include a description of non-auditing capabilities, resources, and expertise available at all levels -- which DELCORA could utilize if needed.

12. A statement attesting that the firm complies with the continuing education and peer review requirements of the PA State Board of Accountancy, GAO and the

AICPA.

13. A description of the firm's experience in and commitment to serving the public sector in the Philadelphia Region, including affiliations, committee memberships, and board of directorships of related associations.

14. A list of partners, managers, or staff accountants with experience in assisting municipalities with applications for the GFOA Certificate of Achievement for

Financial Reporting or in sitting on a review committee of the GFOA that reviews such applications. This shall include a list of clients holding a Certificate of Achievement.

TENTATIVE SCHEDULE FOR THE AUDITING PROCESS

1. Request for Proposal Issued September 8, 2026

2. RFP Submittal Deadline October 14, 2026, at 11:00 AM

3. Review by Finance Committee November 9, 2026

4. Authority Board Award November 17, 2026

5. Execution of Contract December 1, 2026

6. Draft Report Submitted to DELCORA April 16, 2027

7. Adoption by the Boards May 2027

Final Report & Letters Delivered June 1, 2027 to the Authority Office

SCOPE OF AUDITOR SERVICES

GENERAL

DELCORA desires the auditors to express an opinion on the fair presentation of its basic financial statements in conformity with generally accepted accounting principles.

The audit shall include an examination of all funds of DELCORA by certified public accountants duly authorized to practice by the Commonwealth of Pennsylvania. The auditor shall also be responsible for performing certain limited procedures involving required supplementary information required by the Governmental Accounting Standards Board, as mandated by generally accepted auditing standards.

Auditors shall review and verify all trial balance worksheets and summary schedules, including balance sheets, revenues, expenditures, and changes in fund balances. Data source for the schedules will be the financial statements supplied by the Authority.

The Auditors shall submit a draft of all reports for management review (Finance Committee). The final reports are subject to review by the DELCORA Board of Directors.

The Auditor shall incorporate, as part of the basic proposal, meeting time with the Staff for the purpose of discussing the audit report and management letters and their conclusions, as well as meeting time with the Finance Committee of the DELCORA Board and the DELCORA Board.

Basic Reports to Be Issued

Following the completion of the audits of the fiscal year financial statements, the auditor shall issue the following:

1. Signed Independent Auditor’s Report for DELCORA.

2. Independent Auditor’s Report on Internal Controls over Financial Reporting and on compliance and other matters based on an audit of Financial Statements performed in accordance with Government Auditing Standards.

3. A Management Letter addressed to the Executive Director of DELCORA recommending Improvements to the internal controls that are otherwise non-reportable.

4. The auditor shall communicate any reportable conditions found in the audit. A reportable condition shall be defined as a significant deficiency in the design or operation of the internal control structure, which could adversely affect DELCORA’s ability to record, process, summarize, and report financial data consistent with the assertions of management in the financial statements. Non-reportable conditions discovered by the auditor shall be communicated in the Management Letter, as noted above.

5. The auditor shall be required to make immediate written notification of all irregularities and illegal acts or indications of illegal acts of which the auditor becomes aware.

6. Report to the Finance Committee of the DELCORA Board, independent of the Authority Administration.

7. Report to the Board of Directors in Executive Session, independent of the Authority Administration and at public meeting, if requested.

8. The partner and the senior manager in charge of the audit shall be available to attend at least one but not more than three public and/or private meetings with the Authority Board of Directors to present the final audit report, plus a reasonable number of other meetings with the Authority management to discuss the audit report and, if applicable, the Management Letter.

9. Assistance with Completion of Other Reports –

A. The Auditor shall also complete in a timely manner other federal and state reports that may be required outside the general scope of the annual audit described herein, including audits required under the Single Audit Act, if any.

B. The Auditor shall be available to complete other reports, at the Authority’s request, such as Moody's Investors Service financial surveys, U.S. Department of Census surveys, Borrowing Base Certificates, and Debt Statements.

C. The Auditor may charge a separate fee for services rendered under Sections A and B above based upon the hourly rates listed in its proposal.

Number of Copies of Reports to be produced for DELCORA

1. Independent Auditor’s Report – twelve (12) bound copies, and one (1) electronic copy (searchable PDF/A)

2. Independent Auditor’s Report on Internal Controls – twelve (12) copies on auditor’s letterhead, and one (1) electronic copy (PDF/A).

3. Management Letter – twelve (12) copies on auditor’s letterhead, and one (1) electronic copy (PDF/A).

Standards To Be Followed

These audits are to be performed in accordance with generally accepted auditing standards, the standards set forth for financial audits in the General Accounting Office’s (GAO) Government Auditing Standards, the provisions of the Federal Single Audit Act of 1984, 2CFR Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards.

Working Papers Retention and Access to Working Papers

All working papers and reports must be retained, at the auditor’s expense, for a minimum of seven (7) years following the completion of the audit, unless the firm is notified in writing of the need to extend the retention period. The auditor will be required to make working papers available upon request by DELCORA.

Assistance to be provided by DELCORA

The staff and Accountant will be available during the audit to assist the auditor by providing information, documentation, and explanations.

The staff will generate the necessary confirmation letters prepared by the Auditor.

The staff will provide the auditor with reasonable workspace in the office. The Auditor will be provided reasonable access to a telephone line, Wi-Fi, photocopier, and a scanner.